They actually did it. The Federal Reserve just raised interest rates by another 25 basis points right in the middle of a major banking crisis. I honestly do not understand what Fed officials are thinking. They had already blown a 620 billion dollar black hole in the balance sheets of U.S. banks by raising rates so aggressively, and that resulted in the second and third largest bank failures in U.S. history earlier this month. Apparently they are not yet satisfied with the carnage that they have caused, and so they have decided to make things even worse. What we are witnessing is either extreme incompetence of epic proportions, or they are trying to crash the economy on purpose. I am sitting here trying to think of a third alternative, but so far I am coming up blank.
Fed officials can see exactly what their reckless rate hikes are doing to the system, but they are pressing forward anyway. Wednesday’s rate hike was “the ninth consecutive rate increase”…
The Federal Reserve on Wednesday raised its benchmark interest rate by a quarter of a point, forging ahead with its fight against stubborn inflation despite a spate of bank failures and a growing crisis within the financial sector.
The unanimous decision puts the key benchmark federal funds rate at a range of 4.75% to 5%, the highest since 2007, from near zero just one year ago. It marks the ninth consecutive rate increase aimed at combating high inflation.
The fact that it was a “unanimous decision” should greatly alarm all of us.
Isn’t there a single voice of reason left at the Fed?
The last time the Fed raised rates like this was just before the financial crisis of 2008.
And we all remember what that did to our banking system.
But the Fed insists that this time is different. In fact, we were just told that our banking system “is sound and resilient”…
“The U.S. banking system is sound and resilient,” the Fed said. “Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation. The extent of these effects is uncertain. The Committee remains highly attentive to inflation risks.”
Of course banks don’t tighten the flow of credit when things are good.
They tighten the flow of credit when they get into trouble.
And it appears that another major U.S. bank is now exhibiting signs of distress…
Shares of regional bank PacWest Bancorp dropped Wednesday after the company disclosed it had shed more than $6 billion in deposits during the recent squeeze on midsized banks, though PacWest said it did not plan to raise more capital.
The bank said in a press release Wednesday that it had $27.1 billion in deposits as of March 20, which is down from $33.9 billion at the end of December and from $33.2 billion on March 9. The change appears to have largely come from venture banking deposits, which accounted for a third of PacWest’s deposits at the end of December and now stand at just 24%.
There are more than 4,000 banks in the United States today, and hundreds of them could end up failing before this crisis is over.
That would mean fewer mortgages for potential homeowners.
That would also mean fewer auto loans, credit cards and debit cards.
Unfortunately, the flow of credit is the lifeblood of our economy, and so we need our banks to be healthy.
But if the Federal Reserve continues to go down this road, bank after bank will be absolutely crushed.
Needless to say, the Fed’s insane policies are also bursting the housing bubble. At this point, U.S. home prices are down 12.3 percent just since last June…
The national median existing-home price fell 0.2% in February from a year earlier to $363,000, the first year-over-year decline since February 2012, the National Association of Realtors said Tuesday. Median prices are down 12.3% from their record $413,800 in June.
U.S. homeowners have already lost trillions of dollars of home equity, and now the Fed has just poured more fuel on the fire.
It is madness.
It is literally insane for the Federal Reserve to aggressively hike rates as we are plunging into a major economic downturn, but that is precisely what they are doing.
Look, if the long-term economic outlook was positive do you think that Walmart would be closing even more stores?…
Walmart has announced plans to close stores in Hawaii and Minnesota, which join a handful of other stores closing in several states this year.
The retail giant said the decision was made after a review process that determined the impacted stores failed to meet financial expectations, the company told USA TODAY.
Ten stores in Florida, Hawaii, Illinois, Minnesota, New Mexico, Oregon, Washington D.C., and Wisconsin will close by the end of the year, along with two experimental “pickup” locations in Illinois and Arkansas.
Walmart exists to make money.
If there was a chance that those stores could be turned around, Walmart would not be permanently shutting them down.
Sadly, other major retailers are also closing locations all over the nation.
They can see what is coming.
Higher interest rates are already crushing economic activity from coast to coast, and they are battening down the hatches.
The “experts” at the Fed are assuring all of us that they know exactly what they are doing, but the truth is that they have lost control.
As you read this article, wealthy individuals and large companies are pulling uninsured money out of small and mid-size banks all over America.
Many of those small and mid-size banks will soon be in very serious jeopardy, and that will significantly reduce the flow of credit into our economy.
Is this what they want?
Do they really want to see the U.S. economy implode?
Our leaders continue to make mind-numbingly bad decisions, and we are on a course that leads to national suicide.
When will the American people finally wake up?
Sadly, most Americans are still blindly trusting the “experts”, and the “experts” have us on a highway to extreme misery.
***It is finally here! Michael’s new book entitled “End Times” is now available in paperback and for the Kindle on Amazon.***
About the Author: My name is Michael and my brand new book entitled “End Times” is now available on Amazon.com. In addition to my new book I have written six other books that are available on Amazon.com including “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”. (#CommissionsEarned) When you purchase any of these books you help to support the work that I am doing, and one way that you can really help is by sending copies as gifts to family and friends. Time is short, and I need help getting these warnings into the hands of as many people as possible.
I have published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.
I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is definitely a great help. These are such troubled times, and people need hope. John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.” If you have not already done so, I strongly urge you to invite Jesus Christ to be your Lord and Savior today.
Article cross-posted from The Economic Collapse Blog.
Three Reasons a Coffee Gift Set From This Christian Company Is Perfect for Christmas
When you’re searching for a Christmas gift that’s meaningful, useful, and rooted in faith, you don’t want to settle for anything generic. This season is filled with noise — mass-produced products, last-minute picks, and trends that fade as quickly as they appear. But one gift stands apart because it blends genuine quality with a message that matters: a coffee gift set from Promised Grounds Coffee.
This small Christian-owned company has become a favorite among believers who want to support faith-driven businesses while giving friends and family something they’ll actually enjoy. Here are three reasons a Promised Grounds Coffee gift set may be the most thoughtful and impactful present you give this year.
1. It’s Truly Delicious Coffee
Too many “gift-worthy” coffees look beautiful in the package but disappoint when the cup is poured. Promised Grounds takes the opposite approach — exceptional taste first, thoughtful presentation second.
Their beans are sourced with care, roasted in small batches, and crafted to bring out a rich, smooth flavor profile that appeals to both casual drinkers and true coffee lovers. Whether someone enjoys bold, dark roasts or lighter, more delicate blends, every sip reflects quality that stands shoulder-to-shoulder with the biggest specialty brands.
Simply put: this coffee is good. Really good. Some say it’s absolutely fantastic. If you want a gift that won’t be re-gifted, ignored, or shoved in a cabinet, this is it.
2. It Spreads the Word While Serving a Real Purpose
There are many Christian gifts that are meaningful… but not exactly practical. There are also useful gifts that have nothing to do with faith. Promised Grounds Coffee bridges both worlds beautifully.
Each gift set delivers an encouraging, faith-centered message through its packaging and presentation — a simple but powerful reminder of God’s goodness during the Christmas season. The cups are especially popular and serve as a daily reminder of the blessings from our Lord. At the same time, the product itself is something people will actually use and appreciate every single day.
It’s a gift that uplifts the spirit and fills the mug. A gift that points loved ones toward Scripture while still being part of the normal rhythm of life. And in a culture that increasingly pushes faith to the margins, giving a gift that quietly but confidently honors Christ can make a deeper impact than you might expect.
3. It’s Affordable, Valuable, and Elegantly Presented
Many people want to give something meaningful without breaking their Christmas budget. Promised Grounds Coffee strikes that perfect balance — the sets look and feel premium, but the price remains accessible.
The packaging is classy, clean, and gift-ready, making it ideal for:
- Family members of all ages
- Co-workers or employees
- Church friends or small-group leaders
- Hosts, neighbors, and last-minute gift needs
It’s the kind of gift that feels more expensive than it is — and more thoughtful than most of what you’ll find on store shelves.
The Perfect Blend of Faith, Flavor, and Christmas Cheer
A coffee gift set from Promised Grounds Coffee checks every box: a gift that tastes amazing, conveys your faith, supports a Christian business, and brings daily enjoyment to the person who receives it. In a season when so many gifts are forgotten, this one stands out for all the right reasons.
If you want a Christmas present that reflects your values and delivers genuine joy, Promised Grounds Coffee is the perfect place to start.
Seems to me they focus on the laws of supply and demand, but ignore the laws of mass production. The cost of producing that Model T, and the price the consumer had to pay for it, is directly dependent on the ability to manufacture higher quantities efficiently and in a short amount of time. Slow the demand to one or two Model T’s a day, and all the sudden that nice efficient production process is worthless, and the Model T is essentially as expensive as a custom-built car. The cost of production is going up, while artificially constricted demand is driving prices down, and it is then not very long before that Model T plant has to shut the doors.
Now on the supply side you’ve got multiple market forces all driving up costs, while on the demand side there are conflicting forces some trying to drive prices down and others trying to drive prices up. Well, that might possibly stabilize prices on the demand side, but all the while you’re driving supply side costs through the roof.
And whether or not artificially slowing demand could actually work is a crap shoot to begin with, because those same forces are driving down supply. Now you’ve got a race to the bottom between supply and demand, and a guessing game of which will outpace the other. At that point, you might as well be running to the highest point on the deck of the Titanic. You’re just putting off the inevitable.
Another factor is which side, supply or demand, at a given level of production, is the loan. It’s not quite as simple as supply side vs demand side. On the supply side, throughout the supply chain root system, we have both supply and demand at every level. When they go out and try to sell these interest rate manipulations, the focus is always on end consumer loans. Yet if you’re also making capital less available to the production side of things, your efforts are conflicting.
But I’m not an economist or anything. I’m sure they’re all far more knowledgeable than us commoners , and know what they’re doing – you know, since all they’ve been doing has worked so great thus far (🙄)
Then when it doesn’t work they send out the goon squad to blame the results of all their manipulation on free-market capitalism, when the mess they created wasn’t driven by free-market forces at all. Perfect smoke screen. It was the fault of them there eeeviil producers.